Essity has reported increased market shares and high margins in all business areas in its fourth quarter and full-year 2025 results.
Strong product launches, selective price adjustments and intensified marketing activities yielded higher market shares during the quarter for more than 65% of its branded sales in the retail trade.
For the full-year 2025, net sales decreased 4.8% to SEK138,494m compared with the same period a year ago.
Sales increased organically by 0.9%, EBITA increased to SEK19,503m, and the total profit for the period (total operations) dropped 40% to SEK12,718m from SEK21,048m in 2024.
For the fourth quarter, net sales decreased 8.2% to SEK34,695m, while EBITA increased 9% to SEK5,005m. Profit for the period (total operations) increased by 11% to SEK3,224m.
Ulrika Kolsrud, Essity’s President and Chief Executive, said: “A quarter with increased market shares, high profitability, growth in strategic segments, acquisition and strong cash flow ended 2025.
“In 2025, Essity delivered net sales of SEK138bn and profit of SEK19.6bn. We grew our sales organically and reported our highest margin in five years, 14.1% year-on-year.
“Organic sales growth for the full-year was positive and the margin increased. This demonstrates the strength of our portfolio of leading hygiene and health products that people need, regardless of the state of the economy or world.
“Meanwhile, we are focused on increasing the growth rate going forward and are now executing on launched initiatives to faster achieve our group targets.”
High growth was reported in several of its segments, including brands such as TENA for men, Hydrofera advanced wound care, Tork Peakserve dispensers and Saba night towels.
However, organic sales for the group decreased in the quarter compared with the preceding year, a decline that was mainly attributable to price adjustments.
The volume and product mix remained relatively stable in a continued challenging market environment.
The margin of 14.7% was a result of “lower costs of goods sold and good price management”, she added.
During the quarter, the company acquired Edgewell’s feminine care business in North America, including the Carefree, Stayfree and Playtex brands.
“We are building a stronger Personal Care business in North America in line with our strategy to focus on categories with high potential for profitable growth in attractive geographies.”
The acquisition is expected to close in the first quarter of 2026.
“We achieved all of this in a year marked by a turbulent external environment and challenging market conditions.
“The stable cash flow has enabled us to maintain our strong financial position, allowing us to invest in growth while providing returns to shareholders.
“Even though we are proud of our strong performance in 2025 given the market situation, we have a clear ambition to accelerate our progress toward our financial targets,” Kolsrud said.
